Negative corporate image due to its country of origin (Russia) Opportunities: Growth market thanks to the development of cybercafé industry and the fact that more and more people use the Internet – Endpoint security market in constant growth : lots of customers agree to pay an expensive software if it’s very efficient, because the number of malicious programs is increasing and they want to have a total protection – Smartness also need protection against viruses : launching security software for mobile devices Threats: Hackers are always one step ahead antivirus software, so these software are not 00% safe – Free antivirus software (for example Vast) are a big threat for traditional IT security companies. 2. From the SOL’S standpoint, how would you segment the potential market for anti- virus products? Evaluate SOL’S performances in each of the segments. Even if Speakeasy Lab’s revenue greatly and constantly increase since it was founded, it doesn’t perform in the same way in each branch of the anti-virus product market. Irish market can be segmented in different ways. First, it differs in the kind of client, depending if it is for consumers or for businesses. Products supply, distribution, racketing and prices are very different between both markets.
Speakeasy Lab performs better in consumer market (3rd biggest vendor of IT security software in the Nor in 2010) than in the corporate one (world 5th largest company). In 2009, SOL’S revenue were $255 million for consumer market (65% of SOL’S total income) and $109 million for corporate market. We can also segment the market by geographic areas. In 2010, its first market was Europe ($218 million of revenue), especially thanks to its leading position in Russia (almost 60% of market share). Then comes America with $134 million, even if the market share in the US was quite low (3. %) due to the domination of two American “giants”: Symantec and MacAfee.
In terms of market share, KILL also performs well in countries such as China (in top 3), Malaysia (17. 3%) d AJAX (16 3%). But even it KILL NAS won market snares in almost each area during the last years, it’s still a small company in the US and in Australia for example, where competitors are well established. Finally, even if the case doesn’t really stresses on that point, this market is currently segmented depending on the kind of electronic device. Such as the other IT security companies, KILL offers software for computers Windows, Mac), but also for smartness and tablets (Android). This last segment is likely to significantly expand in the next years, because cybercafé is increasing such as the number of devices. 3.
Did SOL’S Russian origin lead to an adverse perceived impact on its brand image? “hat were some of the activities KILL did to enhance its brand and overcome the negative COO? What other activities would you suggest to strengthen its brand globally? SOL’S Russian origin can be considered as an advantage for producing the best security software because Russia has the best computer hackers in the world. In this way, KILL can hire skilled computer engineers, who know very well how viruses Nor. That’s one of the reasons why SOL’S products are technologically better than the others. However, producing antivirus software in a country full of hackers can trouble the consumers, because if doesn’t provide an image of security.
To strengthen its brand, the company first decided to change the designation of its products by putting ‘Speakeasy’ in the beginning of each name, in order to create unity in its product range and to give the image of a brand not only focused on antivirus software. KILL also put in place co-branding relationships and sponsorships with famous other brands such as Ferreira, with sport leagues and clubs. To struggle against this negative country of origin image, KILL had to prove the superiority and the reliability of TTS products. That’s why they have hired some of the best computer specialists and they have based their product strategy on quality and efficiency (hourly updates, ability to quickly find malicious programs or holes in software products and to fix them… ).
Finally, to enhance even more its image towards corporate market, KILL cited to launch an PIP plan, to acquire credibility and to be like its two main competitors. To strengthen its brand, KILL could put in place partnerships with some of the world largest companies, organizations or governments, by equipping their IT systems with SOL’S products for a cheaper price. Then KILL could communicate about that, arguing that it if such organizations have confidence in KILL, that’s because KILL offers the best cyber-protection. I think that the PIP plan is also a good decision in order to take a new international dimension and to acquire a great corporate image.